Existing convertible bonds with a redemption value of $225 million will be exchanged into a combination of new CBs, amortising high-yield bonds and cash, easing the repayment burden for the company.

Hong Kong-listed China Nickel Resources will go ahead and exchange most of its outstanding 10% convertible bonds after both bondholders and shareholders approved the exercise last week. The move will push back its upcoming redemption payments, and by introducing an amortising feature should make it easier for the company to manage its future cashflows.

It will also remove the concerns that China Nickel would not have been able to repay the bonds when they were...

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